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Export Geographical Diversification and Economic Growth Among ASEAN Countries

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  • Hinlo, Jennifer E.
  • Arranguez, Grace Ivy S.

Abstract

The study investigated the relationship of export geographical diversification and economic growth among ASEAN countries for the period 1980-2014. With a sample of 5 countries- Indonesia, Malaysia, Philippines, Singapore and Thailand- the study computed for the geographical diversification of countries using the Herfindahl index. Using time series analysis, with Vector Autoregressive (VAR) analysis and Granger causality tests, the relationship of the two variables among ASEAN countries were tested. The results showed a generally decreasing trend of HHI values of all 5 countries. Results of the analysis of the relationship showed a bidirectional relationship for Malaysia and a unidirectional relationship from export geographical diversification to economic growth in the case of Philippines. For countries Indonesia, Singapore and Thailand, results showed no causality which indicates that the variables are independent for these countries. Based on the results, the study recommendeds the followng: (1) formulation and implementation of appropriate strategies to improve export structure and improve economies for Malaysia and Philppines; and (2) diversification of export structure in terms of market destinations for Philippines to improve its economy.

Suggested Citation

  • Hinlo, Jennifer E. & Arranguez, Grace Ivy S., 2017. "Export Geographical Diversification and Economic Growth Among ASEAN Countries," MPRA Paper 81333, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:81333
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    References listed on IDEAS

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    Cited by:

    1. Jinsoo Lee & Bok-Keun Yu, 2018. "The Effects of Export Diversification on Macroeconomic Stabilization : Evidence from Korea," Working Papers 2018-25, Economic Research Institute, Bank of Korea.
    2. Akbas, Yusuf Ekrem & Sancar, Canan, 2021. "The impact of export dynamics on trade balance in emerging and developed countries: An evaluation with middle income trap perspective," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 357-375.
    3. Ghialy Yap & Shrabani Saha & Nelson O Ndubisi & Saif S Alsowaidi & Ali S Saleh, 2023. "Can tourism market diversification mitigate the adverse effects of a blockade on tourism? Evidence from Qatar," Tourism Economics, , vol. 29(4), pages 880-905, June.
    4. Lee, Jinsoo & Yu, Bok-Keun, 2019. "The Effects of Export Diversification on Macroeconomic Stabilization: Evidence from Korea," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 41(1), pages 1-14.

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    More about this item

    Keywords

    ASEAN; Export geographical Diversification; Herfindahl index;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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